Central Bank of India (CENTRALBK) Earnings Call Transcript & Summary

Ladies and gentlemen, good day and welcome to the Central Bank of India Earnings Conference Call hosted by Antique Stockbrokings. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sohail Halai from Antique Stock Broking. Thank you and over to you, Sohail.

Yes. Thank you, Ali. Thank you, Rao sir and the team for giving us this opportunity to host the call. I welcome all of you to Central Bank of India's 3Q FY '22 Earnings Call. Today, we have with us Mr. M.V. Rao, MD and CEO; Mr. Alok Srivastava, Executive Director; Mr. Rajeev Puri, Executive Director; and Mr. Mukul Dandige, CFO; along with other senior members from the management team. Sir, I would propose an opening remark from you, post which we can open the floor for Q&A. I would hand over to you sir, for your opening comments.

Thank you. Great. Thank you, Sohail. And also thank you all the participants for sparing your time. Just I will give you the highlights -- with the improved performance, Bank has earned a net profit of INR 279 crores, that is 69.09% higher than compared to the net profit of December '20 quarter that is INR 155 crores (sic) [ 165 ] crores. And NII improved from INR 2,228 crores to INR 2,746 crores. There is an increase of 33.35% (sic) [ 23.25% ] and CRAR, it has improved from 12.39 to 15.87 on Y-o-Y basis. And gross NPA, it is reduced a little from 16.30% to 15.16%. That is on Y-o-Y basis and net NPA, which was 4.73% in December '20 now it stands at 4.39%. PCR, which was 84.19%, now it stands at INR 85.77%. And net interest margin improved from 2.99% to 3.77%. This number is higher because of 1 of the income that I will explain to you later in the later slides. And coming to the business figures. Now our total business stands at INR 5.19 lakh crores, which is 2.98% Y-o-Y growth is there when you compare with the December '20 figures, that is INR 5.04 lakh crores. Total deposits now stands at INR 3.37 lakh crores and CASA deposits INR 1.68. Now it is one of the highest now we have recorded 50.01% of the CASA we have and total advances is INR 1.82 lakh crores. And in this RAM segment is INR 1.20 lakh crore and corporate is INR 61,000 (sic) [ 61649 ]. So our CD ratio is at 54.03. And then in the advanced mix, RAM and the corporate now our percentage stands at 66% RAM and 34% corporate. We are on the same track the guidance what we have given earlier. And when you come to the RWA, that is risk-weighted assets, which was 82.91% in '20. Now it has come down to 81.63%. So to give a fair idea on the disbursements, the way things are moving in the bank when you compare with the previous quarter to this December quarter, now we have picked up in the retail around INR 3,590 crores for disburse, that is 61% higher than our September quarter disbursal. And MSME, around 90% disbursements are more that is around INR 2,175 crores we have disbursed. And our agriculture, INR 2,289 crores were disbursed that is 4% higher than the September quarter disbursal and corporate credit, it is INR 3,422 crores that disbursed, which is 6.73% higher than the September quarter. Why we are giving this is when you see the actual growth in the retail, agriculture, MSME, it appears that only single-digit growth is there in the total outstanding figures. So the disbursement pace has picked up and going ahead the guidance what we have given that we will be achieving. And coming to the mandatory targets under the priority sector, the bank has not only achieved surpassed all the mandatory targets for weaker section, it is 16.09% against 10%. And in the total -- in the agriculture, against 18%, it is 19.16% and small and marginal farmers it is 10.05% against target of 8%. And total priority against of 40%, now we are at 42.66%. Coming to the standard advances rating chart. Now our 79.53% of advances are rated and they are all above investment grade and above. And coming to the Retail segment. The single most vertical, which is contributing is the home loan that is INR 28,677 crores and then Retail segment as a whole, it is INR 49,843 crores that is 27% of the total advances. And one more new vertical what we have started now we have picked up the pace that is co-lending where now total outstanding is at INR 915 crores, and we have sanctioned is INR 1,061 crores during this -- I think 4.5 months. In this December quarter, we have sanctioned INR 706 crores. Total outstanding is INR 915 crores. Coming to the SMA in the presentation, we have given both the segments. One is above INR 5 crores and another is up to INR 5 crores. Above INR 5 crores, it is -- now stands at 2,037, that is 0, 1 and 2. If you see the 1 and 2, it is 135 and 570. It is a very negligible percentage when you compare with the portfolio of INR 5 crores and above in the total credit book. Up to INR 5 crores we have 12,960 where 4,862 is SMA1 and SMA2 is 3680. So if you see the slippage ratio that I will be giving later. We have controlled our slippages and which is just 0.88% for the December quarter. And the restructured book total stands at 9,511 with the COVID restructured book of 7,582 and then 1,929 is from the standard restructured book. This is the restructured book this one. When you come to the NPA movement, the opening gross NPA was 27,252 then our upgradation recovery and regular write-offs amounted to 950 and then slippages with INR 1,300 crores. Final figure stands at INR 27,608 crores, which is 15.16%. When you compare with the December '20 figure, it was INR 16.30 crores. And then you're also aware in this gross NPA, maximum is entangled in NCLT and then just today itself, we had some news that this bad bank formation approval has received from the RBI. And once we come to know the accounts which were identified to be transferred then it will have a larger impact in reducing gross NPA. And coming to the net NPA, now it is at 4.39%, which is in December '20, it was 4.73% and in absolute terms, it is only INR 7,085 crores and we are on track to reduce further. And our guidance stands at below 4% for March '22. And the provision coverage ratio, now it is 85.77. And earlier I told you my slippage ratio is 0.88 and NIM, that is NIM stands at 3.77 because there is one-off income of INR 533 crores if I consider that and then recast it will stand at 3.03 well above my guidance of 2.75. And coming to the CRAR, it is 15.87, in CET1 13.84 and Tier 2 is 2.03. Leverage ratio stands at 5.22. And financials at the glance, if I tell you total interest income which was 4.74% growth is there, which stands at in absolute terms 6,057, and total interest expenses was minus 6.86. So my expenses have gone down more than the income growth. So altogether net profit, the operating profit, let me explain you on the operating profit level which was 1,223. It is 2.60% higher than the Y-o-Y. If you see the quarter-to-quarter, there is a dip that is in September 21, there is INR 1,425 crores but it has come down INR 1,223 crores. I will explain you why has come. This was most deliberated and considered way of putting the figures from our side, we will explain you on this. And the net profit stands at INR 279 crores. And as far as the fee-based income, there is a small -- there is a dip. We are aware that the treasury income has come down, but overall performance is on the expected lines. Coming to the expenses. On the operating expenses side, if you see, there is an increase of around INR 330 crores in the staff cost where we have front ended of our staff requirements, staff expenses of March '22 in the December itself because of various factors. This is precisely made with an idea of reducing pressures on the provisions for the March quarter. And then for the past 3 years if you see the balance sheet, all the 3 quarters we used to do well and in March where we used to go down. So in the earlier interactions also, I told you that we are making provisions in such a way to even out the spikes in the provisions that may come in the March. So in the same spirit, we have front-loaded our staff cost of March in the December itself. So that gives you the fair idea how March balance sheet will be panning out. Coming to the financial indicators. Cost of deposits is 3.83% and then ROA is at 0.33%. We have improvement of from 0.19 in December '20 to 0.33% now. And ROE 0.86% in December '20. Now it stands at 1.21%. And credit cost, 1.28, which was there in December '20 now it has come down to 0.87. Because of the staff expenses, cost-to-income ratio have gone up to 63.55. If I can address those entries, it will come down to 51.5. So -- in this investment portfolio, which was almost a similar size of my credit book because of our earlier shifting of the securities in the month of April and where things are moving right now, we have saved a lot from that and the P.V. 01 which was 14.4 earlier, now it has come down to 7.54 and P.V. 01 for the SLR, which was 11.46 now it is 5.41. In a similar way the modified duration, which was 2.57, now it is at 1.93. And for SLR also, the modified duration is 2.48 in December 20. Now it has come down to 1.66%. So with the shifting of securities and also churning off my AFS book. A lot of things we have avoided in terms of M2M provisions. And as such, the digital transactions coming to that, it has increased from our December '20 to '21. And in other touch points, whether it's payment acceptance, touch points or digital touch points and this one in mobile banking, Internet banking, IMPS, the number is increasing. In a similar way, the transactions which are happening at the branch level that is little -- coming down a fraction. And on the financial inclusion side, on the total security schemes our bank continue -- continuing its performance well and then coming to the last one that is regarding the PCA and compliance status. I'm very happy to share with you all the benchmarks which are there in the PCA framework that we are meeting and capital adequacy ratio, that trigger was 11.5%. Right now, we are at 15.87% and net NPA should be below 6%. Now we are at 4.39% and the leverage ratio should be more than 3.5% and we are at 5.22%. So in all probability, we made already submissions to the RBI at any point we may hear the good news that is going to give much more motivation not only to the entire bank and also other stakeholders. And coming to the goals for the March '22 deposit growth the range what we have given 8% to 9% that we will be achieving, advances growth will be in the range of 6% to 8%. And then our RAM and corporate credit balancing off my credit book which will continue to be 65-35. And then NIM will be more than 2.8%. CASA will be around 49%. Now we are at 50%. Gross NPA where we have given 12% to 12.5%. Once these 15 accounts, if we come to know the name of this account, then we can work out to what extent my gross NPA will come down if they move to the bad bank. And net NPA definitely it will be below 4%. And the PCR already we have achieved that 86%, slippage ratio very much controlled and the guidance what we have given will be less than 2% definitely, it will be less than 2%, like that in credit cost also and the return on assets, that is 0.30%, that we are going to meet above that. And cost-to-income ratio what we have given is the below 55%. If we see for the March, definitely we will be below 50% this is from my side. And then any clarifications, anything is required, it's welcome. Thank you.

[Operator Instructions] The first question is from the line of Anirban Sarkar from Max Life Insurance.

Congrats on a good quarter, and thank you for the opportunity. So I have a question on your balance sheet. If I look at your balance sheet, you have an excellent liability side in terms of granularity of the cost and cost of fund. So what I am seeing is that our investment book is quite large, almost compared with our loan book. And it is hurting our NIMs for sure. So in an environment where we are seeing credit demand pick up slowly. What is the roadblock that we are facing? Because if we look at -- our home loan book also has grown 2.5%, for example. And this is 1 segment where everybody has shown growth. So are there any roadblocks here? What should we expect going ahead, give me your thoughts in that regard?

Yes. Thank you. Regarding the loan disbursement. We are aware that regarding the credit and investment book almost equal and we have built enough safeguards and took the measures that is yielding as far as precautions what we have taken on the M2M front that you have seen and witnessed in this quarter. And coming to the disbursements. Yes, there is a lot of things we have built up during these 9 months in terms of creating the vertical and also making certain processes easier for the field functionary to take the credit decisions. So in this, whatever the little growth that is appearing in the retail, it is just because we have not replenished our pool full buyout portfolio, which was repaid in these 9 months. Instead, we have embarked on the co-lending portfolio where we are expecting much more traction going ahead. That is 1 part to increase the retail book. And coming to the branch or field functionary sanction the enablers what we have created. That's why I have given that disbursals what happened in my December quarter, which is the indication that confidence that has built up in the field is going to contribute a lot in coming quarters. So this is how we will be rebalancing. That's why the credit in the -- within the credit book the balancing of corporate and RAM that we are very much aware and the steps we are taking is to balance between the 65 to 68 will be our RAM book and 32 to 35 will be my corporate book. So on the corporate side and the retail side moving together the expectations what we have that we will be reaching for March. If any specific thing if you request kindly flag me.

Sure, sure. And sir, also regarding our corporate book growth. So we have seen some good growth in this quarter. So is this private or public CapEx? And are there any industries which are -- which industries would you say are operating at optimal utilization level?.

In this, we are very, very choosy because we always goes with the capital conservation. So wherever I am getting a guarantee from the government. There, we are venturing that do not with a large size on the optimum size of around INR 500 crores to INR 800 crores. And in the AAA company, maybe in our Godrej Group what we have and then Tata Group what we have, these are all the legacy relations what we have in this bank, there we are going for this private. Otherwise, it is mostly for the government or government-related corporations.

Okay. Sure, sure. And sir, what would be our sanctions and disbursements made in ECLGS so far?

Yes, ECLGS 1, we have INR 3,150 crores and ECLGS 2 is INR 369 crores. Three, INR 14 crores and ECLGS 4 is only INR 4.82 crores. Total put together, it will be around INR 3,900 crores.

All right. These are all disbursements, right?

Yes, yes. Disbursements. Happened.

Okay. And sir, structurally, where can our NIMs and ROAs move over the next 2 years, maybe?

Next 2 years is very difficult to predict at this moment.

Maybe next 1 year or so...

The way we are balancing our book and then we are -- one is on the cost of deposit that what we feel that almost we are touching the floor. There is no further reduction may be possible. And going forward, if we contain our cost of deposit cost of funds around 4, that is the best way of managing liabilities. But as far as the profit -- profitable lines on my asset side where housing on the ramp side will continue to have its own contribution, but more we are focusing on the Agri infra in the warehouses, the cold chains and then processing industry where we are moving. On the MSME side, we are moving aggressively on the trade platform where [indiscernible] right now. And then on co-lending side, we are focusing more on the health infra, that too particularly on the equipment side, tying up with 1 specific NBFC who is already into that business.

All right. All right. And sir, what is the AFS proportion of our investment book?

Yes, 32%.

The next question is from the line of Aakarsh Kotriwala from Aakarsh Kotriwala & Co.

I have 2 questions basically. Do we have any partnership with NBFCs under co-lending, which can aid faster loan growth? And secondly, structurally, where do we expect the ROA of the bank to move? what would [indiscernible].

Yes. As far as the co-lending part is concerned already I explained that we have partnership with 5 NBFCs that INR 915 crores is outstanding. That's how we are riding on this co-lending partner synergy. So whatever the plus they have we recognized their potential and then we have tied up with 5 NBFCs and then the sanctions and disbursement I think in the entire public sector banking scenario, we are -- we will be the #1 in terms of sanctions and businesses. And going forward as far as ROA is concerned our guidance was above 0.30% already we have crossed that figure and we will continue to be above our guidance.

The next question is from the line of [ Yash ] from Rainbow Financial Services.

Yash, here from Rainbow Financial Services. My question is on PCA. When are we coming out of PCA and can you provide a few details and timelines on that? Also, can you throw some light on slippage and credit cost guidance for your fourth quarter?

Yes. Regarding the PCA now with the revised framework there are only 4 indicators. So all these -- 3 indicators, this is CRAR, net NPA and leverage ratio. The benchmarks fixed by the RBI is CRAR should be more than 11.5% and we are at 15.87%, well above the requirement and trigger. Net NPA should be below 6%. We are right now at 4.39%. And going forward for March, definitely, we will be below 4%. And the leverage ratio should be more than 3.5%. We are at 5.22%. So practically, we are meeting all the benchmarks in the PCA framework. Already we have submitted our request to RBI saying that we are meeting all the requirements and we may hear at any time. We are hopeful of hearing the positive news at the earlier stage. That is on the PCA front. And coming to the slippages. The way the SMA movement is there and -- the slippages till now, we had around INR 4,000 crores in the 9 months and we have given the guidance up to INR 5,000 crores. Probably 1 account bigger one, which was not factored at any point of time, which is also restructured under OTR. In all probability, it should not slip if at all even if that slips our total slippages may not cross INR 5,500 crores.

The next question is from the line of an [indiscernible] an Individual Investor.

Sir, I just wanted to check any comments on privatization by the government.

Madam, the sources what you have similar sources, we are also having nothing more than that. We are also watching the TVs and the press that's all.

Okay, sir. Sir, and what would be the outlook on credit growth?

Credit growth, madam, 6% to 8%, the guidance what we have given that we will be striving on that front and we will be reaching also because right at this moment if you see it is only 0.69% growth because of the INR 4,800 crores, which we have written off in the March balance sheet. That's why that Y-o-Y growth appears to be very low and muted. But going forward, the way we have planned for the co-lending and also the assets which we are going to pick up on the corporate side coupled with our growth on the retail, agriculture and MSME, that is around 6% to 8% in between that growth we will be ensuring for March.

[Operator Instructions] The next question is from the line of Sushil Choksey from Indus Equity.

I think most of the questions have been asked by other members. I would rather ask a question the other way around. The new management team has already been in place with the bank for 9 to 10 months, including ourselves from the time you started. If I want to take a broader picture with Central Bank CASA at 50%, brand image being one of the best in the industry. So I'm not taking any comparison with any peer bank or anything. What would be your vision where would the bank look like in 24 to 36 months from now.

Actually sir, I do not want to make a big one, but let me tell you very recently we had a separate dedicated Board meet on the digital transformation of the entire business and a lot of action points were drawn on that and we are going ahead and you must have seen our [indiscernible] in press also. And we will be focusing more on moving on to the digital trend -- moving our businesses on the digital side. Along with that one more new area what we are venturing here, no other public sector banks still try, is to bring our assurance functions on the technology platform that is a regtech company. Already, we have floated the [ EOA ] and 2, 3 companies already pitched in further. So a lot of resources, manpower and energy, [indiscernible] we were spending on the inspection or in the compliance or on the risk management. We will be moving on the technology platform, where we will be deriving real-time benefits rather than doing the postmortem after an event occur. So these are all the things going parallelly, the way things pan out, I see a very bright future and also the glory what we had earlier that will come back to this bank.

So the [indiscernible] bank future is visible. Sir, in most of the answers, which you raised in the Q&A you have embarked on a co-lending model where INR 900 crore number is far better than what I've heard in other competitors where people are yet to start on co-lending or generated a volume which is of your size. If we have to make this capability of larger pie compared to NBFC lending, which is the traditional model which the bank had what enablers are you putting in place to get this co-lending number maybe INR 10,000 crore, INR 20,000 crore book in '22?

May not be INR 20,000 crores, definitely we are eying for the 5-digit number only, where we will be increasing our number of partners and that partner selection will be specific to any particular activity or particular geographical location, we will be gauging into their strength -- and then how synergies can be built if we feel that it is a fit case then we will be having the arrangements with them. So that now we started the scouting in selecting our partner.

The partnership we have so far announced finance and MSME.

Exactly only 2.

Any other areas?

Gold also, we have tie-up in Madhya Pradesh that is exclusive to that state.

Okay. A anything on specific which you would like to do in this digitization map where, let's say, we were lacking compared to some of these banks in the past. But because the technology is moving ahead how would you catch up with what kind of specific initiative, which would make a consumer bank kind of a situation because we have 50% CASA. And if you can elaborate where is our CASA coming because I understand it is not from metros, which kind of geography of India is providing you this kind of CASA?

Sir, your observation is right. My CASA is coming more from my semi urban and my rural background. And this is particularly from the -- our inter plans in Madhya Pradesh and Eastern Bihar, Eastern West Bengal and our Maharashtra rural area. This is where we are getting this CASA.

The digital initiatives would even reach these pockets where the CASA is supporting the bank in a big year?

Yes, definitely. Because the way our competitors and then the environment is evolving, -- there is a need, not only need it is a necessity for us to reach out them on the digital front because there will be a lot of savings on the cost front. If you compare with my brick-and-mortar branch way of doing the business and with the digital, I can save a lot.

Sir, what would be our unutilized credit limits in the bank today?

As on December, it is around INR 9,000 crores.

INR 9,000 crores. And sir, on Investment Bank, you've taken preemptive steps in the current year anticipating the yield hardening. How do you see the situation going forward on that income side?

See, our planning for March is have already factored up to 7. So yes, with that also we are in a good position right now. So beyond that, it is very difficult for us to predict the money market. So as far as the investment book is concerned, M2M issues are concerned, we have planned up to 7, today I think it is 6.77 something. And then we -- that much worry is not there for us as far as the investment book is concerned right now.

No, you're not carrying the concern. That's what I'm asking, how we want to reap benefit in the scenario where we stand today? I remember in the Q1 call itself, we had indicated that we have protected ourselves in anticipation of the yield movement. It has been a great move from our treasury team well supported by the top management to get to the direction which was desired.

Yes.

Sir, my last question in broader scheme of things, how are we utilizing the rationalization of brands with digitization and distribution capability getting better over a period of time.

Right now, we have around 4,600 physical branches. And then right now, we are ramping up of my BC footprint. Earlier, it was 5,600. Now we have planned for 15,000, already 9,800 we are now working on the ground level. So going forward up to March, we want to see that it should reach the 12,000 level. So wherever the branches are not growing the way we are expecting or the loss, whatever the formula we have to guess the liability if they are not meeting our standards, then the BC will took over that place of operation. And then brick-and-mortar will -- that will be closed. Having said this, we are not on the spree of closing the physical branches. Still, we feel that customers they want to visit the branch that only lends a lot of credibility to the bank, the legacy and the loyalty factor what the customers are having for this bank. So even if we are thinking on the metro, we will be closing down in the CBD area and then moving these branches to the outskirts where a lot of development is taking place. Overall, we want to have around 4,200 to 4,500 physical branches in the near term.

Sir, this answer leads me to a question. What are we doing to empower human resource to get better with the kind of progress in thinking, which the bank is moving towards digitization and cross-selling or co-lending, what kind of human empowerment are we doing within the bank that our staff resources performed much better than where we stand today.

Correct. Correct. Sir, as far as HR part is concerned, first and foremost, what we did is to give them the mental comfort who are in a position to take the decision that we have already provided. In terms of policy, in terms of the approval centers, what we brought in all my 90 regional offices, where after approval only disbursement happens. And then whatever the deficiencies that are there in that loan underwriting that will be taken to the approval center and then clearly communicated to the field that even if account turns into NPA, accountability will not be devolved on the sanctioning authority except on the fraud part. Okay, that we made it very clear. That's why disbursals have picked up. That is number one. Number two, that capacity building is a continuous process. We are now equipping our learning centers, that is [indiscernible] center with higher executive to this one, where we are expecting to train and also to give this e-module so that people need not visit the physical centers. They can go through on the e-learning app. So that type of learning and also capacity building happens. Number three, most important, what we did is for all the people who are being promoted to the executive cadre, we are putting them for a sufficiently long tenure. That means around more than 3 weeks exposure in the premier institutes. So they will get that knowledge and exposure. Definitely all these put together is going to help the bank in moving forward and also to meet the customer expectations.

Sir, any plans for reduction of government holding from 93.1% to 75%, which is SEBI-regulated over a period of next 18 months, which we need to and government is also direct.

Right now, we have no information on that. And then still once we come out of the PCA, we may think of reaching to the market for raising the capital, where this particular issue may be addressed to some extent.

Sir, I have some discussion on that paper. I will seek your office meeting and discuss that.

Definitely, sir. Thank you.

[Operator Instructions] The next question is from the line of Ashok Ajmera from Ajcon Global Services.

Thank you for giving this opportunity, sir. And thank you, Rao saab for extending the postponing this meeting from 4:00 to 4:30 so that I could all participate in it after the PNB analyst meet and I could hear your comments and also all the questions. Most of the questions have already been covered and you have explained them very well. So I will once again dwell upon post-PCA scenario. Likelihood, you might get very soon be out of this preventive corrective measures of RBI. Sir, is there any separate road map or any thought process has gone into that post PCA scenario that the bank outlook is going to change [indiscernible] strategy is also going to change because on the capital adequacy also now you are very comfortable. So our being very conservative in last, I think, a couple of years and conservative does not mean that it's always a good policy because it affects your profitability and potential. Like Sushil was also saying that this bank has a great potential and you said yes, where we can reach a very, very high level. So sir, first is on this that what is the strategy going to be now post this when you are free totally.

Once we move out, then I will definitely share with you. But on the broader front, let me tell you, earlier, we were saying 70-30 combination of my RAM and corporate credit book, now we are making 65, 68 and 32, 35. So I think this gives you the fair idea that the part what we are working.

That's great. Any way sir, I will also -- this also personally, we will discuss with you. You are doing really excellent job. The entire -- all your EDs and the entire top management team along with the staff is doing a fantastic job. Now sir, coming back on this and how much money we have, sir, in the bad bank, how much in the first tranche is...

That is not yet clear. Today, only we heard that all the approvals they have received. And then they were saying around 15 accounts they want to shortlist. Once that name comes out then I can make a real assumption how much gross NPA will come down.

Okay. Now sir, coming back to this co-lending where you are really -- you have taken a very right decision according to me also and you have gone ahead aggressively. So as I understand and for RBI norms, it is mostly an 80-20 model isn't it, sir? So in that case, when you say that your sanctions are INR 1,062 crores. So if you are a stand-alone your sanction or that 20% is also included in this.

This is 80% of the pool.

So it means the sanctions may be around INR 1,250 crores overall on this and 20% has gone from the -- your partner NBFC and 80% has gone from you. What finally is, what kind of average yield to us after distributing the balance part of the interest to the partner, what finally we are left with.

September quarter, the September quarter, my book was very less, that is INR 355 crores. That is also we started in the last week of August, okay? So that is not covered for the entire quarter. But in December also INR 706 crores we have disclosed that is also not uniform throughout the quarter. If I take INR 355 crores, which was outstanding as on September 21, for the same portfolio, if I am working out for the December quarter my profitability on that line stands around 7.08 in that range.

Okay. So...

This is besides whatever we have agreed upon to book as upfront fee on some other line items.

Yes, yes, that's correct. So that also heads up to the -- and sir, if you look at our treasury, I mean, it has been observed earlier also that we have got a huge investment amount as compared to generally our type of the bank. Where the yield as compared to the credit -- I mean, the advances yield is lower in the treasury. And now with this pressure coming in of the interest getting -- interest rates getting hardened and even the trading profit also has come down from INR 402 crores to INR 70 crores in this quarter. What -- how do you want to take it forward? Like -- are we going to remain in this range with this kind of investment into the investment portfolio or where we have the income from treasury operations, trading and the interest altogether combined, I think we are getting around 6 points something on the price for the slide. So going forward, do you have any kind of reduction in the investment amount and taking it to the credit?

Yes. So the way our credit book is increasing, even if you see from December '20 to '21, the amount which was there in my total investment book has come down by around INR 6,000 crores. So definitely, this amount has moved to the credit book. The way we have planned right now around this much INR 4.5 to INR 5,000 crores will also move to the credit book. This is 1 part. As far as the reducing the size of my entire investment book. But coming to the yield on investment. Right now, we have closed at 6.28%.

Yes.

And the way we have planned for the churning in the AFS portfolio and also whatever the opportunities that may arise. At no point, we may not go below the level of.6.20%.

Yes, yes. So that will not give any kind of [indiscernible] or decline on the profitability? And slippage is already as per you is under control. Have we had any exposure on the [indiscernible].

Exactly, sir, that we have already made provisions in the September itself. I have shared that...

I think you had done 100%.

No, no, not 100%. Now we [indiscernible] 60%.

10% more has been added on that. It's correct. I remember you had done 50% straight as against 25% or so, whatever, 50% Yes, sir. So what is the amount -- total amount of the [indiscernible].

[indiscernible] group as a whole, it is INR [ 1280 ] crores.

Okay. So only about INR 72 crores is unprovided -- and that, in any case, recovery also will be, I think, better than that in the entire...

Must be better than that.

So that will come back as a profit or reversal of the provision.

Right.

That's -- sir, on the -- again, coming on the capital front, -- do you have any plans you will still augment from this 14.5% also or whatever is there. Do you...

Now it is -- my one is 15.7% -- 15.87%. I have lendable resources around INR 41,000 crores now.

All right. So there is no need for you to...

Only when we move out of the PCA, definitely, if the good times are there, we would like to raise the capital.

Okay. And just one point on this, your cost to income you already clarified that [indiscernible], I think provision for this staff provision, which is onetime done for in this quarter, it will again come back to, if I heard you correctly, around 51.5% or something, isn't it?

Correct. Correct. Correct.

In the March quarter.

Perfect.

[Operator Instructions] The next question is from the line of [indiscernible] Limited.

First of all, congratulations for the good profit bank has achieved. Sir, as the figures are increasing and NPAs are declining, can you please confirm that bank is going to privatize in the upcoming budget? Is there any possibilities, there any chances?

This is beyond our -- we can say beyond our capacity to answer this.

Okay. Because there are certain rumors that end up coming but...

As earlier I was saying, we are also hearing the news and also watching the TVs.

[Operator Instructions] As there are no further questions, I now hand the conference over to Mr. Sohail Halai from Antique Stockbroking for closing comments.

Thanks a lot, sir, for giving Antique Stockbroking this opportunity to host the call. Wish you all the best and stay safe to you and your team. And sir, before we close this call, would you like to give any closing remarks?

Yes. Only, I would like to extend my thanks for all the time and energy our participants have given to us. And then the guidance what we have given for the March, we are going to meet our growth. It is only the last one I would like to touch you.

Thanks and wish you all the best.

Thank you. Thank you very much.

Thank you. Ladies and gentlemen, on behalf of Antique Stockbroking, that concludes this conference call for today. Thank you for joining us and you may now disconnect.